Neil Mawston, Associate Director at Strategy Analytics said, “We forecast 20 million smartphones to be sold in the USA during 2007. We expect Apple and its iPhone portfolio to account for 2 million of that total, giving it a 10 percent share by the end of the year.”

Chris Ambrosio, Director of Wireless Device Strategies at Strategy Analytics, commented, “Apple has a strong brand and good retail presence; now it needs to deliver on the product. Competitive pricing, of course, will be critical, as will the device’s usability and reliability.”

David Kerr, Vice President at Strategy Analytics, added, “A critical question will be what percentage of iPhone buyers will be churning from other operators? A second key issue is whether the iPhone will draw users who would otherwise have bought Nokia N series music and multimedia devices, eroding their premium tier share, or will iPhone most dramatically impact the SEMC Walkman series fortunes? The pressure is on Apple to deliver a great mobile media experience with the iPhone when it is launched on June 29, 2007. Its previous entry, with the Motorola Rokr music phone, in 2005, was a flop, and the industry will be watching carefully to see how much Apple has learned from that failure.”

* Strategy Analytics defines a smartphone as a data-centric mobile phone with a multi-tasking operating-system. Numbers are rounded.

About Strategy Analytics:

Strategy Analytics, Inc., a global research and consulting firm, provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Newton, MA, and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics, Broadband, Telematics, Wireless Strategies and Enabling Technologies. For more information, see www.strategyanalytics.com.